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Is Knowledge Really Power and Ignorance Bliss? A Study of Financial and Pension Ignorance

Author

Listed:
  • Agata Olechowicz-Szewczyk

    (University of Gdansk, Poland)

  • Elzbieta Babula

    (University of Gdansk, Poland)

Abstract

In this study, we examine the impact of financial and pension ignorance (information avoidance) on the decisionmaking process for long-term savings. We define the concept of pension ignorance, as active avoidance of retirement information, failure to make decisions regarding retirement savings, and a lack of strategic retirement planning. To assess financial ignorance, we utilized the scale developed by Barrafrem et al. (2024), while pension ignorance was evaluated using the scale designed by the authors. The study was conducted with a sample of 1,200 Polish residents aged 18 to 65, using the Computer-Assisted Web Interviewing (CAWI) method. The findings reveal that both pension and financial ignorance play a significant role in explaining individuals’ willingness to save for the long term.

Suggested Citation

  • Agata Olechowicz-Szewczyk & Elzbieta Babula, 2025. "Is Knowledge Really Power and Ignorance Bliss? A Study of Financial and Pension Ignorance," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 1(23), pages 58-69.
    • Handle: RePEc:sgm:jbfeuw:v:1:y:2025:i:23:p:58-69
    DOI: 10.7172/2353-6845.jbfe.2025.1.4
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    Keywords

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    JEL classification:

    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

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